The Federal Trade Commission (FTC) will apply to federal court for a preliminary injunction against the acquisition of Activision Blizzard

American Federal Trade Commission (FTC) took another step towards blocking a planned purchase Activision Blizzard from the side Microsoft. According to a CNBC source, the Federal Trade Commission will ask California federal court to precautionary measureswhich would make it impossible to close the transaction before the decision to block was made.

The FTC may request similar action if there is a relevant concern that the business may be closed immediately. Some time ago it was assumed that Microsoft could close the deal before July 18, after which there will be additional financial obligations to Activision Blizzard.

Thus, the American giant will surpass the court of appeal in Britain and the decision of American regulators (in its own administrative court from August 2). This could lead to further lawsuits and Activision Blizzard having to leave the UK, but it appears he was considering taking a similar step. The FTC is trying to prevent this with its current actions.

The current FTC application has two phases. First, the federal court decides on extradition temporary injunction, which will suspend the ability to close the deal for two weeks until more information is collected. This measure is usually a formality, but not a rule. If the court refused to hand it over, Microsoft in America de facto won.

The situation would be similar if the federal court did not issue what was requested after the two-week deadline (which can only be extended with Microsoft’s permission). precautionary measures. Even then, nothing would stop us from closing the US deal by the aforementioned July 18th.

If the court grants the FTC’s request, Microsoft will be unable to conduct business for a certain period of time (apparently until a decision is made by the FTC’s administrative court). Only an administrative court can send a store to federal court, which will ultimately decide on its permanent blocking.

“Today’s decision by the FTC to file a lawsuit against Activision in federal court should speed up the decision process. This is a win-win situation for everyone involved. We always prefer constructive and peaceful negotiations with governments, but we believe in our arguments and look forward to presenting them,” he replies. Microsoft President Brad Smith and points to an upcoming federal court hearing.